Ether, Ethereum’s native token, should be valued somewhere around £1,000, according to JP Morgan market strategist, Nikolaos Panigirtzoglou.
Compared to Ether’s price on Tuesday morning, this marks an 125% overvaluation of the crypto world’s second largest currency.
In correspondence with Insider, Panigirtzoglou said that the Ethereum network is less attractive than the current price of Ether suggests, especially as it faces increased competition from networks like Solana and Cardano.
The problem is that Ethereum’s key selling point is losing its uniqueness, Panigirtzoglou noted. Decentralised applications and smart contracts are becoming more common amongst the network’s ever-growing list of competitors.
Similar protocols are gaining traction through major partnerships and funding opportunities, such as Avalanche’s recent £170m investment led by Polychain.
Panigirtzoglou believes that Ether’s current price is “expressing an exponential increase in usage and traffic that might not materialise”.
Despite JP Morgan’s doubts, developers on the Ethereum network remain positive it will remain the dominant decentralised finance blockchain.
Jack O’Holleran, CEO at ethereum development company Skale Labs, said to Insider: “The vast majority of smart contract developers are building in the Ethereum ecosystem.
“Despite major partnerships being announced on other chains, we still see the absolute majority of developers being pulled into the Ethereum vortex.”
Much of Ethereum’s future success will depend on the launch of ETH 2.0, the network’s planned series of upgrades to make it faster, more scalable, and environmentally friendly.
With the final upgrade, sharding, planned for 2022, it won’t be long before the crypto space sees how Ethereum’s future is set to shape out. More can be read about Ethereum’s planned upgrades here.
Want to learn more from executives at the heart of this space? The Blockchain IoT Solutions Congress, on November 2 2021, will explore the convergence of these two technologies and the use cases and industries that will benefit.